Legal Document Updates in English (07/2012)

THE SELECTION OF AIRCRAFT LESSORS SHALL BE
CARRIED OUT IN THE FORM OF COMPETITIVE BIDDING

On December 05, 2011, the Government issued the Decree No. 110/2011/ND-CP on the management of lease and purchase of aircraft and aircraft engines, spare parts and supplies and aircraft, aircraft engine, spare part and supplies maintenance and repair services.

This Decree applies to projects with 30% or more of their capital funded by the State to purchase aircraft and aircraft engines; Operations not subject to formulation of investment projects, including lease of aircraft, aircraft engines, spare parts and supplies and purchase of aircraft spare parts and supplies, aircraft spare part and supplies services… of Vietnamese enterprises with 30% or more of state-owned capital.

The selection of aircraft lessors shall be carried out in the form of competitive bidding; In case the type of aircraft needed for lease is scarce and the aircraft lessor requests participation in an auction, the competent person of the enterprise shall decide on participation in the auction on the basis of aircraft information and market price.

The interval between the date of first publication of an invitation for competitive bidding and the date of issuance of a requirement dossier is at least 5 days. The time for preparation of a proposal dossier is at least 5 days from the date of issuance of a requirement dossier.

For the case of purchasing the aircraft, selection of aircraft suppliers will be based on 03 forms: open bidding; restricted bidding; contractor appointment through direct negotiations; Contractor appointment through direct negotiations is applicable when the aircraft supplier is the aircraft manufacturer. The application of this form must be permitted by the Prime Minister.

This Decree shall take effect on February 01, 2012

COMPETENCE FOR GRANT OF WRITTEN CERTIFICATIONS OF GENETICALLY MODIFIED
ORGANISMS' ELIGIBILITY FOR USE AS FOOD IS TRANSFERRED TO
MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

On November 30, 2011, the Government issued the Decree No. 108/2011/ND-CP amending a number of articles of the Decree No. 69/2010/ ND-CP of June 21, 2010, on biosafety for genetically modified organisms, genetic specimens and products of genetically modified organisms.

Accordingly, competence, order and procedures for grant or revocation of a written certification of genetically modified organisms' eligibility for use as food; competence for a written certification of genetically modified organisms' eligibility for use as food shall be transferred from Ministry of Health to Ministry of Agriculture and Rural Development.

There are no changes in time for completing administrative procedures for grant or revocation of a written certification of genetically modified organisms' eligibility for use as food.

Under the Decree, in order to be granted a written certification of eligibility for use as food, genetically modified organisms must satisfy either of the following conditions: the dossier of application for a written certification of their eligibility for use as food has been appraised by the Genetically Modified Food Safety Council, which concludes that such genetically modified organisms have no uncontrollable risks to human health; They have been permitted by at least five developed countries for use as food and no risk has been seen in these countries.

These amendments and supplements shall take effect on January 15, 2012.

 
INCREASE THE CAPITAL SUPPORT FOR PLANTING BIG AND SMALL TIMBER TREES
TO VND 4.5 MILLION/HA AND VND 03 MILLION/HA RESPECTIVELY
 

On December 09, 2011, the Prime Minister promulgated the Decision No. 66/2011/QD-TTg amending and supplementing a number of articles of the Decision No. 147/2007/QD-TTg of September 10, 2007, on a number of policies for development of production forests during 2007-2015.

Accordingly, organizations, households, individuals and communities that plant big timber trees (to be exploited after 10 years) or indigenous trees are eligible for a support of VND 4.5 million/ ha instead of 03 million/ha as before; and VND 03 million/ha (increase by 01 million/ha) for planting small timber trees, bamboos and tree stream.

Forest-planting organizations, households, individuals and communities other than those specified above are eligible for seedling or forest extension support at a maximum level of VND 2.25 million/ha; or VND 2.25 million/ 1,000 scattered trees (equivalent to one hectare of planted forests) instead of the maximum level of VND 1.5 million as before, if they plant scattered trees.

Besides, they are eligible for a lump-sum support of VND 150,000/ha, for surveys and designing and conclusion of forestation contracts; VND 45,000/ha, for appraisal and approval of projects to support production forest planting. For assignment, grant of land use right certificates and contracted allocation of land for forestation, households and individuals will receive a support of VND 300,000/ha, and organizations and communities will receive a support of and 150,000/ha.

The maximum levels of support for newly developed nurseries are VND 52.5 million/ ha; VND 37.5 million/ha for newly developed breeding forests; VND 15 million/ha for regenerated breeding forests; In addition to the above supports, a support of VND 150.000/ha/year shall be given to offset management expenses for breeding forests and nurseries for no more than 5 years.

 
PRIME MINISTER ISSUES NEW DIRECTIVE FOR REAL ESTATE MANAGEMENT
 

As stated in the Directive No. 2196/CT-TTg dated December 06, 2011 of the Prime Minister on a number of measures to intensify management of the real estate market; in recent times, the real estate market in our country has seen important steps of development. Many housing development projects and service works with complete technical and social infrastructure systems have been formed synchronously, which have changed the appearance of urban centers, improved people’s living standards.

Besides its positive aspects, the operation of the real estate market has revealed weaknesses in the past time. The market has developed in an unhealthy and unstable manner. The prices of real estate commodities, especially houses, remain high and complicated, particularly in big cities. The structure of houses on sale is imbalanced, lacking medium and small sized houses affordable to the majority of people, especially houses for lease. Speculation and price hiking remain common. Real estate sales tend to be on the decline.

Housing investment has not yet been based on market demand and without housing development planning. The financial system for real estate remains imperfect, the source of capital for the real estate

market mostly comes from banks and mobilizes from the population. And, there are no medium- and long-term credits to support businesses and people in building houses.

In order to address the above weaknesses and constraints and create conditions for the healthy and sustainable development of the real estate market, it is necessary to further intensify management and control of the real estate market; raise the role and responsibility of state management agencies at the central level in examining, appraising and permitting investment in housing development projects and real estate business.

Besides, it is necessary to restructure real estate commodities in response to the market demand, and concurrently step up the development of social houses with the participation and regulation of the State to meet the housing needs of low-income earners facing housing difficulties, contributing to boosting economic development and assuring social security.

PROLONGING ENTERPRISE INCOME TAX PAYMENT DEADLINES
FOR LABOR-INTENSIVE ENTERPRISES

On November 25, 2011, the Ministry of Finance issued the Circular No. 170/2011/TT-BTC guiding the implementation of the Prime Minister’s Decision No. 54/2011/QD-TTg of October 11, 2011, on prolonging 2011 enterprise income tax payment deadlines for labor-intensive enterprises in some sectors to help them overcome difficulties and boost their production and business.

Specifically, the deadlines for payment of 2011 enterprise income tax will be prolonged for one year for labor intensive enterprises or cooperatives including: the 2011 payable enterprise income tax amounts are calculated on incomes from production or processing of agricultural-forest-fishery products, textile and garment, leather and footwear and electronic components; The 2011 payable enterprise income tax amounts are calculated on incomes from construction and installation of water or power plants, power transmission and distribution works, water supply and drainage systems, roads, railways, airports….

Labor-intensive enterprises are those employing more than 300 regular laborers in 2011. For enterprises organized as the parent company-subsidiary company model, the number of employees of the parent company does not include employees of the subsidiary companies.

Enterprises shall separately account incomes from activities eligible for tax payment deadline prolongation. In case enterprise income tax amounts on activities eligible for tax payment deadline prolongation cannot be determined, incomes used for calculating tax amounts eligible for payment deadline prolongation shall be determined as the proportion (in percentage) of the turnover of activities eligible for tax payment deadline prolongation to the total turnover of enterprises.

The deadlines for payment of 2011 enterprise income tax as prescribed in the Tax Administration Law will be prolonged for one year as follows: for tax amounts temporarily calculated for quarter I of 2011, the tax payment deadline is prolonged to April 30, 2012; For tax amounts temporarily calculated for quarter II of 2011, the tax payment deadline is prolonged to July 30, 2012; For tax amounts temporarily calculated for quarter III of 2011, the tax payment deadline is prolonged to October 30, 2012; For tax amounts temporarily calculated for quarter IV of 2011, and payable tax amounts according to the 2011 tax finalization, the tax payment deadline is prolonged to March 31, 2013.

This Circular takes effect on January 9, 2012, and applies to the prolongation of 2011 enterprise income tax payment deadlines under Decision No. 54/2011/QD-TTg

GUIDELINES ON ENVIRONMENTAL PROTECTION CHARGE
FOR MINERAL EXPLOITATION

On November 16, 2011, the Ministry of Finance issued the Circular No. 158/2011/TT-BTC guiding the implementation of the Government’s Decree No. 74/2011/ND-CP of August 25, 2011, on environmental protection charge for mineral exploitation.

The quantity of minerals exploited in a charge payment period used for determining the payable environmental protection charge amount is the quantity of crude mineral ores actually exploited in the period, regardless of exploitation purposes and exploitation technologies or exploitation areas or conditions.

Payment of environmental protection charge for mineral exploitation is not required for cases of exploiting minerals for used as common construction materials within the residential land area under the use right

of a household or individual to serve the construction of such household’s or individual’s works therein; and exploiting earth for leveling grounds or building security and defense works.

Mineral exploiters shall submit environmental protection charge declaration dossiers to the tax offices at which they declare and pay royalties. In case no environmental protection charge for mineral exploitation arises in a month, charge payers shall still fill in and submit charge declaration forms to tax offices…

This Circular takes effect on January 1, 2012, and replaces the Ministry of Finance’s Circular No. 67/2008/TT-BTC of July 21, 2008, and the Circular No. 238/2009/TT-BTC of December 21, 2009.